Apple Starts Using its Own Chips in 2020, Drops Intel

Apple Inc. plans to use its own chips in Mac computers beginning as early as 2020. These chips will replace processors of Intel built in Mac.

Should this happen, the Mac computer line would have a similar processor like iPhones and iPads; the A11 Bionic chip, as an example, is built on their latest products such as iPhone X.

The project ‘Kalamata’ is currently in the early developmental stages. When completed, ‘Kalamata’ will play a big role to make all of Apple’s devices work more similarly and seamlessly together. The project will also result in a multi-step transition of Apple.

This is a result of Apple’s years of development and evolution of its ARM-based processors built into their iOS devices. Apple Watch, Apple TV, and their latest iPhones and iPads have grown more powerful than the company’s past Mac devices.

Apple’s development of their own chips makes them bolster security on their devices. Also, this would integrate new hardware and software, potentially resulting in systems with better battery life.

Furthermore, the switch of the Cupertino, California-based Apple Corporation allows them to bring new features to all of its products and stand out from the competition. Apple would be the first company that uses its own chips. Some popular PC makers like HP Inc., Lenovo Group, and Asustek Computer Inc. use Intel chips.

Although the transition to Apple chips in hardware is set to begin as early as 2020, the changes to the software side would begin even before that. Apple’s iPhone and iPads with custom chips use the iOS. Mac computers, on the other hand, run on a different system called macOS.

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Apple Bids Goodbye from Intel Processors

an Intel processor

In 2005, Apple started using Intel processors in Macs from its previous partner IBM. As apple designs its new chips for Mac devices in 2020, this will put an end to the 15-year partnership between Apple and Intel.

From this, Intel has dominated computing processors for more than a decade. Analysts say apple provided Intel with about 5 percent of its annual revenue.

According to news reports, Intel shares dropped as much as 9.2 percent, the biggest intra-day drop in more than two years. They ended the day down 6.1 percent at $48.92.

On the other hand, an analyst sees no big impact on Apple dropping Intel, “The public perception of this is worse for Intel than the business impact. Most of Intel’s business is on the server side, and when it comes to PCs, Apple share is much smaller than that of HP, Lenovo, and Dell who are Intel’s largest customers.”

The company ‘declined to give comment on speculation about our customers’.

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